Corporate level strategy is a set of actions in a firm takes to gain competitive
ID: 452170 • Letter: C
Question
Corporate level strategy is a set of actions in a firm takes to gain competitive edge by having different businesses competing with different products in different markets.
Corporate level strategy please important part in positioning the company in the best possible manner, to stay ahead of competition in the market. C- level strategy helps in customer retention and managing the business risk of external environment. Corporate level strategy is crucial for long-term sustainability of the business.
Firms can pursue three different levels of diversification by using different corporate level strategies.
Low diversification- this involves minimal diversification most of the revenue is generated by existing core business of the firm. Coco Cola are good examples.
Moderate to high justification- in this case firms go for distribution and related areas link to core business. For example Arcelor Mittal has plans to diversify in the areas of power generation, which is related to existing businesses, as they plan to set up our plans for captive use as well to sell in the market. Another example is Patanjali Ayurved , which expanded its business interests from Ayurved to FMCG.
Very high diversification- firm to go with aggression diversification incomplete unrelated and new markets and business. Generally very large enterprises are capable of having very high levels of justification. An example is reliance groups.
how does this relate to the success of an organization?
Explanation / Answer
organization should follow different corporate level strategy for sustainabilty of organization for long term.since employees are core asset of everey organization ,how organization utilizing his core asset for sustainability
Low diversification : now companies are providing cross training to employees for multiskill to increase productvity.so employ can deliver more contribution with his primary skill & also can give small contribute with his secondary skill
examples: IT industry,TCS,INFOSYS,ACCENTURE etc.
Moderate to High diversification : due to technolgy changes every time , company providing respective training based on individual employ's capability.for sustainbility of organization company changes its employees from one department to another based on his experties.
examples: Google,microsoft
Very High Diversification: organization will give new responsibility to every managers even of managers don't have experiences in that particular level.for sustainlibity of organization , managerial level people will take responsibility into new field.
exemples : IBM enter into Cloud computing